Ethiopia Turns to Property Ownership Incentives to Attract Foreign Investors

The impending change in foreign property ownership is a significant shift that forms part of Abiy’s broader economic reform agenda to liberalize key sectors of the Ethiopian economy. This policy is not only a long-term strategy but also a measure to address short-term issues. The government believes that allowing foreign property ownership may attract more international investment to Ethiopia, increase tax revenue, and stimulate competition to revitalize the local real estate market.

Many see the potential benefits of this policy, with local property developer Solomon Assefa stating that it could bring much-needed foreign exchange into the economy. However, he recognizes that Ethiopia may not be as attractive to foreigners seeking property compared to other destinations like Dubai. The country’s appeal to foreign investors may lie in its low labor costs and subsidized electricity offered by the state.

To support foreign investment, the government has allocated prime city-center plots for the construction of luxury apartments in Addis Ababa. Over the past year, property developers have been granted access to land throughout the capital, with agreements requiring them to reserve 30% of new housing units for public-private partnerships with the state.

In January, the finance ministry announced plans to construct over 78,000 affordable housing units in Addis Ababa through international tenders. The government aims to raise funds through auctions, leading to widescale demolitions in the capital to make way for these developments. However, this may come at a cost to Ethiopians who are evicted to accommodate the new properties, highlighting the challenges that may arise as the policy is implemented.

By Samantha Robertson

As a seasoned content writer at newsderf.com, my passion for storytelling and creativity shines through in every article I craft. With a keen eye for detail and a knack for research, I thrive on translating complex topics into engaging reads that resonate with our diverse audience. My goal is to inform, entertain, and inspire readers through thought-provoking content that leaves a lasting impact. Join me on this exciting journey as we explore the world of news together.

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